EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Ratio of Earnings to Fixed Charges

 

     Year Ended December 31,  
     2007     2006     2005     2004     2003  
     (in millions)  

Income before income taxes

   $ 660     $ 377     $ 428     $ 355     $ 39  

Equity in losses of equity-method investees

     —         —         —         —         —    
                                        

Net income before equity in losses of equity-method investees

     660       377       428       355       39  
                                        

Plus fixed charges:

          

Interest expense including amortization of debt issuance costs

     77       78       92       107       130  

Assumed interest element included in rent expense

     17       16       5       4       6  
                                        
     94       94       97       111       136  
                                        

Adjusted earnings

     754       471       525       466       175  

Fixed charges

     (94 )     (94 )     (97 )     (111 )     (136 )
                                        

Excess of earnings to cover fixed charges

   $ 660     $ 377     $ 428     $ 355     $ 39  
                                        

Ratio of earnings to fixed charges (1)

     8.02       5.01       5.41       4.20       1.29  

 

(1) The ratio of earnings to fixed charges is computed by dividing (i) income (loss) before income taxes and losses from equity interests, plus fixed charges by (ii) fixed charges.